Natural Gas Spiked 19% Today

[cgnao]

http://www.bloomberg.com/markets/index.html

[Smurf1976]

The natural gas (US) price has now come close to the oil price. We'll see US power plants and industry switching FROM gas TO oil if this continues (which it will without Gulf of Mexico gas production if there's any actual damage) and that will lead to higher oil demand.

So, higher oil demand at a time of less production. Now, I wonder what that does to the price...

[aclwalker]

Oil is measured in barrels and gas is usually is cubic feet or metres.

What pressure is the gas at? Because 1 cubic foot of gas at 1 bar obviously contains less gas than 1 cubic foot at 2 bar.

I know it's unrelated to the original point but I was just interested.

[Alberta Tatlock]

Natural Gas is priced per gigajoule.

[aclwalker]

Natural Gas is priced per gigajoule.

<{POST_SNAPBACK}>

Thanks, but I'm talking not so much about the pricing of it but the 'quantifying' of it. Like when you hear that the North Sea has x million cubic feet/metres of gas.

What pressure are they talking about here?

[Guest magnoliawalls]

Eventually, a significant natural gas price increase will push up the price of agricultural produce. Yields have a close relationship to nitrogen fertiliser inputs and natural gas represents about 50% of the cost of nitrogen fertiser.

Farmers are already suffering from tight margins and low profits - sooner or later an increase in input prices will be passed on to the consumer.

[the don]

Thanks, but I'm talking not so much about the pricing of it but the 'quantifying' of it.  Like when you hear that the North Sea has x million cubic feet/metres of gas.

What pressure are they talking about here?

<{POST_SNAPBACK}>

it depends on where you are in the chain.

i dont know what pressure it is pumped out of the well, but industrial gas supplies tend to be between 0.1bar-0.3 bar ( 1.5 psi-5psi)